Everyone knows the real estate market is not too great these days, but for those in the real estate profession there are still market segments that are doing quite well. The trick to being successful in the market today is finding the hot segments and taking advantage of them. You need something where the competition is limited and where sellers are highly motivated and ready to sell, even at today's lower than average prices. So, what market segment offers you all that? Probate investing is your answer. Unlike foreclosures, which may have come to mind, probate real estate is full of sellers wanting to sell and not sellers who are forced to sell.
Probate real estate is real estate that has been left behind when the owner has died. The real estate is currently in probate court and the responsibility of the Executor of the estate. The Executor is responsible for dividing up the assets of the deceased according to the will. Probate real estate can be sold if heirs are all in agreement that it can be sold. Some states may differ in the specific requirements about selling probate real estate. You should always check local laws to be sure you are handling the real estate properly and legally.
Benefits of Probate Investing
Probate investing is often misunderstood by investors and that alone makes it a great market. Many investors think it is time consuming and that selling it is difficult so they never even bother to check into it. The truth is that it is not difficult and not more time consuming than any other investment opportunity.
Additionally, with probate real estate, the sellers are usually quite motivated to sell. The reason for this is that the property was inherited. They likely have their own home and do not feel they need another home or property. Maintaining another property can be costly. They may have mortgages to pay on it or repairs to make. It is common for an heir to simply want to get rid of the property and the burden. Inherited real estate is a burden that people want to get rid of and get the money from selling it instead of holding onto it.
Another reason probate real estate is often put up for sale is that it is common for inherited real estate to have multiple owners. The deceased may have left the real estate to a few heirs. This combined property can become difficult to manage and heirs may simply want to sell it and split up the profits instead of keeping it and hassling over what to do with it.
You are not going to have to deal with people who are being forced to sell, like you would with foreclosures. These people want to sell. They are not being told they must sell. It is a more laid back environment than what you face with foreclosures.
How to Find Properties
As you can see, probate real estate is a great find. It will move fast and sellers usually are not stuck on a selling price, so you have room for negotiations. Finding it is not too hard either. You will get many leads just from looking through the local obituaries and then finding the will for the deceased. Wills are public records so anyone can access them. The local courthouse should be able to help you get a copy of any will you need. If no property is listed you should do a check for property deeds in their name, which are also public records.
Once you find property you can contact the heirs. Send a letter in the mail or make a phone call. Most heirs will be eager for help in selling, so you should not face too much difficulty in finding properties. If someone says they are not selling then simply ask them to keep you in mind. They could decide to sell later and you want to be foremost in their mind if that time comes.
Probate real estate is not a segment of the market that everyone is in. It is often overlooked or simply ignored. Once you get started in probate real estate investing you should have no troubles keeping a steady flow of properties coming your way. Establish a good reputation in the market and you should have a pretty nice business going in probate real estate.
If you where not aware we have a probate investing course with software at www.ProbateProfitSystem.com You can try it out for $1 for 7 days, then only 49 a month.
- Duncan Wierman